Benefits of Decision Support System

Benefits of DSS

• Helps automate managerial processes.
• Improves efficiency and speed of decision-making activities.
• Increases the control, competitiveness and capability of futuristic decision-making of the organization.
• Facilitates interpersonal communication.

Components of a DSS

Following are the components of the Decision Support System:

• Support Tools: Support tools like online help; pull down menus, user interfaces, graphical analysis, error correction mechanisms and also facilitates the user interactions with the system.
• Model Management System: It stores and accesses models that managers use to make decisions. These models can be used by managers to, for example:  analyze the financial health of an organization, forecasting demand of a product or service, etc.
• Database Management System DBMS: To solve a problem the necessary data may come from internal or external database. In an organization, internal data are generated by a system such as TPS and MIS. External data come from a variety of sources such as newspapers, online data services, databases financial, marketing, human resources.

Features of EIS

• The ability to call up summary data from the organization main systems e.g. a summary of profit statement for the month and related balance sheet
• The ability to manipulate the summary data e.g. rearranges its format, make comparison with similar data etc.
• Built in graphics charts and other presentation aids
• The ability to set up templates so that information from different areas is always summarized in the same format
• Information from various sources can be linked i.e. external and internal sources.

Software:

Choosing the appropriate software is vital to an effective ESS. Therefore, the software components and how they integrate the data into one system are important. A typical EIS includes four software components:

1. Text-handling software—documents are typically text-based
2. Database—heterogeneous databases on a range of vendor-specific and open computer platforms help executives access both internal and external data
3. Graphic base—graphics can turn volumes of text and statistics into visual information for executives. Typical graphic types are: time series charts, scatter diagrams, maps, motion graphics, sequence charts, and comparison-oriented graphs (i.e., bar charts)
4. Model base—EIS models contain routine and special statistical, financial, and other quantitative analysis.